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AI has already changed weather forecasting forever.

It’s been a wild few years in the typically tedious world of weather predictions. For decades, forecasts have been improving at a slow and steady pace — the standard metric is that every decade of development leads to a one-day improvement in lead time. So today, our four-day forecasts are about as accurate as a one-day forecast was 30 years ago. Whoop-de-do.
Now thanks to advances in (you guessed it) artificial intelligence, things are moving much more rapidly. AI-based weather models from tech giants such as Google DeepMind, Huawei, and Nvidia are now consistently beating the standard physics-based models for the first time. And it’s not just the big names getting into the game — earlier this year, the 27-person team at Palo Alto-based startup Windborne one-upped DeepMind to become the world’s most accurate weather forecaster.
“What we’ve seen for some metrics is just the deployment of an AI-based emulator can gain us a day in lead time relative to traditional models,” Daryl Kleist, who works on weather model development at the National Oceanic and Atmospheric Administration, told me. That is, today’s two-day forecast could be as accurate as last year’s one-day forecast.
All weather models start by taking in data about current weather conditions. But from there, how they make predictions varies wildly. Traditional weather models like the ones NOAA and the European Centre for Medium-Range Weather Forecasts use rely on complex atmospheric equations based on the laws of physics to predict future weather patterns. AI models, on the other hand, are trained on decades of prior weather data, using the past to predict what will come next.
Kleist told me he certainly saw AI-based weather forecasting coming, but the speed at which it’s arriving and the degree to which these models are improving has been head-spinning. “There's papers coming out in preprints almost on a bi-weekly basis. And the amount of skill they've been able to gain by fine tuning these things and taking it a step further has been shocking, frankly,” he told me.
So what changed? As the world has seen with the advent of large language models like ChatGPT, AI architecture has gotten much more powerful, period. The weather models themselves are also in a cycle of continuous improvement — as more open source weather data becomes available, models can be retrained. Plus, the cost of computing power has come way down, making it possible for a small company like Windborne to train its industry-leading model.
Founded by a team of Stanford students and graduates in 2019, Windborne used off-the-shelf Nvidia gaming GPUs to train its AI model, called WeatherMesh — something the company’s CEO and co-founder, John Dean, told me wouldn’t have been possible five years ago. The company also operates its own fleet of advanced weather balloons, which gather data from traditionally difficult-to-access areas.
Standard weather balloons without onboard navigation typically ascend too high, overinflate, and pop within a matter of hours (thus becoming environmental waste, sad!). Since it’s expensive to do launches at sea or in areas without much infrastructure, there’s vast expanses of the globe where most balloons aren’t gathering any data at all.
Satellites can help, of course. But because they’re so far away, they can’t provide the same degree of fidelity. With modern electronics, though, Windborne found it could create a balloon that autonomously changes altitude and navigates to its intended target by venting gas to descend and dropping ballast to ascend.
“We basically took a lot of the innovations that lead to smartphones, global satellite communications, all of the last 20 years of progress in consumer electronics and other things and applied that to balloons,” Dean told me. In the past, the electronics needed to control Windborne’s system would have been too heavy — the balloon wouldn’t have gotten off the ground. But with today’s tiny tech, they can stay aloft for up to 40 days. Eventually, the company aims to recover and reuse at least 80% of its balloons.
The longer airtime allows Windborne to do more with less. While globally there are more than 1,000 conventional weather balloons launched every day, Dean told me, “We collect roughly on the order of 10% or 20% of the data that NOAA collects every day with only 100 launches per month.” In fact, NOAA is a customer of the startup — Windborne already makes millions in revenue selling its weather balloon data to various government agencies.
Now, with a potentially historic hurricane season ramping up, Windborne has the potential to provide the most accurate data on when and where a storm will touch down.
Earlier this year, the company used WeatherMesh to run a case study on Hurricane Ian, the Category 5 storm that hit Florida in September 2022, leading to over 150 fatalities and $112 billion in damages. Using only weather data that was publicly available at the time, the company looked at how accurately its model (had it existed back then) would have tracked the hurricane.
Very accurately, it turns out. Windborne’s predictions aligned neatly with the storm’s actual path, while the National Weather Service’s model was off by hundreds of kilometers. That impressed Khosla Ventures, which led the company’s $15 million Series A funding round earlier this month. “We haven’t seen meaningful innovation in weather since The Weather Channel in the 90s. Yet it’s a $100 billion market that touches essentially every industry,” Sven Strohband, a partner and managing director at Khosla Ventures, told me via email.
With this new funding, Windborne is scaling up its fleet of balloons as it prepares to commercialize. The money will also help Windborne advance its forecasting model, though Dean told me robust data collection is ultimately what will set the company apart. “In any kind of AI industry, whoever has the top benchmark at any given time, it’s going to fluctuate,” Dean said. “What matters is the model plus the unique datasets.”
Unlike Windborne, the tech giants with AI-based weather models — including, most recently, Microsoft — aren’t gathering their own data, instead drawing solely on publicly accessible information from legacy weather agencies.
But these agencies are starting to get into the game, too. The European Centre for Medium-Range Weather Forecasts has already created its own AI-based model, the Artificial Intelligence/Integrated Forecasting System, which it runs in parallel to its traditional model. NOAA, while a bit behind, is also looking to follow suit.
“In the end, we know we can't rely on these big tech companies to just keep developing stuff in good faith to give to us for free,” Kleist told me. Right now, many of the top AI-based weather models are open source. But who knows if that will last? “It's our mission to save lives and property. And we have to figure out how to do some of this development and operationalize it from our side, ourselves,” Kleist said, explaining that NOAA is currently prototyping some of its own AI-based models.
All of these agencies are in the early stages of AI modeling, which is why you likely haven’t noticed weather predictions making a pronounced leap in accuracy as of late. It’s all still considered quite experimental. “Physical models, the pro is we know the underlying assumptions we make. We understand them. We have decades of history of developing them and using them in operational settings,” Kleist told me. AI-based models are much more of a black box, and there’s questions surrounding how well they will perform when it comes to predicting rare weather events, for which there might be little to no historical data for the model to reference.
That hesitation might not last long, though. “To me it’s fairly obvious that most of the forecasts that would actually be used by users in the future will come from machine learning models,” Peter Dueben, head of Earth systems modeling at the European Centre for Medium Range Weather Forecasting, told me. “If you just want to get the weather forecast for the temperature in California tomorrow, then the machine learning model is typically the better choice,” he added.
That increased accuracy is going to matter a lot, not just for the average weather watcher, but also for specific industries and interest groups for whom precise predictions are paramount. “We can tailor the actual models to particular sectors, whether it's agriculture, energy, transportation,” Kleist told me, “and come up with information that's going to be at a very granular, specific level to a particular interest.” Think grid operators or renewable power generators who need to forecast demand or farmers trying to figure out the best time to irrigate their fields or harvest crops.
A major (and perhaps surprising) reason this type of customization is so easy is because once AI-based weather models are trained, they’re actually orders of magnitude cheaper and less computationally intensive to run than traditional models. All of this means, Kleist told me, that AI-based weather models are “going to be fundamentally foundational for what we do in the future, and will open up avenues to things we couldn't have imagined using our current physical-based modeling.”
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Building a data center is also quite carbon-intensive.
When I helped start Heatmap News three years ago, I didn’t think I would be writing this much about big tech companies.
I knew that, sure, they were crucial to America’s ability to develop and scale some next-generation emissions-reducing technologies. (By then, Microsoft had already started its huge carbon removal purchasing program.) And, yes, I knew they bought a lot of renewables. But I still understood their clean energy programs chiefly as an employee perk — a way for some of the economy’s richest firms to show their largely urban, college-educated, and liberal employees that they cared.
Perhaps that was true once. It’s not true anymore. Over the past several years, the tech companies have become major electricity consumers and producers in their own right. Artificial intelligence has turned their electricity procurement and development businesses into core operational competencies. (Meta and Microsoft have even considered entering the electricity trading business.) Some of the thorniest questions in climate policy were first encountered by these tech companies.
More importantly, their hunger for electricity has transformed them into quasi-industrial companies — and given them enough heft in the market to sometimes counterbalance (and sometimes collaborate with) the utilities and fossil fuel firms that previously steered the sector. As such, they’re now crucial parts of the U.S. decarbonization story.
Three companies in particular dominate the artificial intelligence cloud business: Google, Amazon, and Microsoft.
The country’s best-known frontier labs, such as OpenAI and Anthropic, rely on these companies to provide their compute power; Amazon Web Services is the backbone of virtually the entire online software industry. Amazon, Google, and Microsoft account for more than half of the country’s data center power capacity, according to the investment firm Jeffries.
So these companies’ emissions are, in a sense, not only their own; they also give us a view into the AI industry’s carbon footprint more broadly.
Over the past two weeks, all three of these cloud providers released their energy and emissions data for the past year, and we’ve looked at the top line findings from these reports in past editions. Today I want to briefly dive into what they could mean together.
Let’s handle the part you already know: Everyone’s emissions are up.
Microsoft’s emissions grew by 25% last year, their largest year-over-year leap since the pandemic. Amazon’s emissions leapt by 16%, its largest one-year increase ever. Google’s emissions increased by 18%, rising above their pre-pandemic level.
This surge will make the companies’ climate goals increasingly difficult to meet — and some of them are coming up fast. Microsoft has pledged to become ‘carbon negative’ by 2030, meaning it must remove more climate pollution from the atmosphere than it emits in that year. Google has pledged to achieve net zero by 2030, a goal that requires — by its own estimate — cutting its emissions in half by that year, as compared to their 2019 level. Amazon, meanwhile, has pledged to achieve net-zero in its operations by 2040.
All three firms’ greenhouse gas emissions are up because of the AI data center boom. Microsoft consumes nearly four times as much electricity as it did before the pandemic; Google’s electricity use has more than doubled.
These companies’ energy use has swelled, too, but at least as of last year, nearly all of their energy demand still took the form of electricity. When we think about “electrification” in the national context, perhaps we should think at least as much about these AI megalodons as we do about heat pump or battery manufacturers.
Amazon, to its shame, does not publish recent electricity usage data, so it doesn’t appear on either of these charts.
But outsiders have estimated its power consumption based on the numbers it does publish. Hendrik Rood, an IT researcher and consultant in the Netherlands, calculates that Amazon’s data center business used 78,000 gigawatt-hours in 2025. That would mean it consumes nearly as much electricity as Microsoft and Google combined.
As I cautioned yesterday, some of these figures are already outdated. Although all three companies just released their 2025 sustainability data, Microsoft brackets its report to the fiscal year, which ended on June 30, 2025. Google and Amazon’s data covers the calendar year.
In what might be a quirk inherent to the genre, all three sustainability reports have a somewhat defensive tone (or at least a writing style that tries to anticipate quibbles). These companies know that their sustainability pledges, embraced in the heady flush of 2020 and 2021, have become much more difficult to fulfill in the AI era. And they want you to know that all of their emissions could be worse — if not for their corporate policies, pollution might be much higher.
I can’t say I find these counterfactuals entirely believable. We don’t know what Google or Microsoft or Amazon would do if, say, computing were more energy intensive or a certain process more environmentally damaging. And Jevon’s paradox suggests that every gain in efficiency — especially for a service as in-demand as AI — will make it cheaper to use AI, therefore raising its energy demand.
But I do think it’s worth sharing these claims to get some perspective. Google, for its part, says that its corporate emissions would be five times higher than they are if not for its total slate of policies:

Microsoft takes a more clinical approach. It selects four of its corporate policies: “carbon-free electricity, sustainable fuels, XBOX console efficiency,” as well as efforts to decarbonize its Surface tablet production. If not for these interventions, it says, it would have emitted 34 million tons of greenhouse gas into the atmosphere last year, not the 21 million tons that it did produce.
For all the focus on the difficulty of powering data centers (including by Heatmap), electricity does not drive most of these companies’ emissions — or it didn’t in the first half of last year, at least. The majority of Microsoft, Google, and Amazon’s greenhouse gas emissions came from what are dubbed “scope 3” emissions, a somewhat nebulous category that includes buildings, employee travel, and the full carbon footprint of their supply chain. This category reflects the AI boom in its own way.
(Skip this if you’re a sustainability nerd: In the classic schema used for corporate emissions accounting, “scope 1” emissions are direct fossil fuel pollution from an asset that the company owns or controls, “scope 2” emissions are pollution associated with the electricity, steam, or chilled water purchased by the company, and “scope 3” emissions are everything else — pollution from the company’s upstream supply chain and its downstream product use. I find this scheme makes somewhat more sense for businesses like airlines and automakers than it does for technology conglomerates. But that’s a different newsletter.)
It makes sense, then, that Amazon should have huge scope 3 emissions. The scope 3 subcategory called “Purchased Goods and Services” drives the largest share of its emissions; these include pollution from goods and services that Amazon buys for its employees to use, as well as all the embodied carbon in its line of Amazon Basics products.
But the biggest driver of scope 3 emissions — and thus for emissions overall — for Microsoft and Google came from “capital goods,” a category that covers new construction, physical assets and other fixed infrastructure used to produce products and services. More than 40% of Microsoft’s total emissions came from capital goods, and they made up more than 9 million metric tons of the company’s greenhouse gases. Google doesn’t fully aggregate out its “capital goods” category, combining it with the “use of sold products” subcategory, but it was responsible for almost 9 million tons as well.
These capital goods include the new data centers themselves: all the cement, steel, server racks, and silicon that actually make up the physical infrastructure supporting the AI boom. Here at Heatmap, we often focus on the electricity sector because it’s where so much change. But it’s good to remember that construction remains enormously carbon-intensive, and the literal buildings that house AI are, in many cases, still driving a disproportionate amount of emissions.
The July 4 heat wave showed just how far the metropolis has to go to reach its decarbonization goals.
New York City’s decarbonization plan has stalled. The events of this year’s Fourth of July weekend all but prove it.
The temperature in the city reached as high as 100 degrees Fahrenheit on Thursday, July 2, the hottest it’s been here in 14 years. As New Yorkers blasted their air conditioners to stay cool, utilities drew on all of New York’s resources to serve the resulting electricity demand for cooling. These included a fleet of dual-fuel power plants, which can burn both oil and natural gas and encompasses many of its peakers, which turn on to deal with spikes of demand.
Those dual-fuel plants pushed over 10 gigawatts of electricity onto the grid on the evening of July 1— about a third of the total load in the state — and hit similar peaks on the 2nd and 3rd. The peaker fleet owned and operated by the New York Power Authority was operational for over two-thirds of the heat wave, which persisted for four consecutive days, while some ran nonstop from 7 a.m. July 2 to 3 a.m. July 4, according to NYPA.
In response to questions about the use of its peakers during the heat wave, a NYPA spokesperson told me, “During times of peak energy demand, like last week’s heat wave, the state’s independent grid operator called upon NYPA’s Small Natural Gas Power Plants to run well beyond their typical usage to meet high energy needs and prevent localized blackouts.”
While specific generator information is a protected trade secret, they said, “capacity suppliers are critical resources to meet system peak loads like those experienced during the recent heatwave.”
And yet still, over 100,000 people lost power during the heat wave. Real-time electricity prices in the area of the New York grid that includes the city got as high as $1,465 per megawatt-hour on the evening of July 3, according to data collected by Grid Status.
At the same time, the latest addition to New York’s non-carbon electricity generation fleet, a transmission line from Quebec that can transmit up to 1,250 megawatts known as the Champlain Hudson Power Express, was struggling. It experienced an unplanned outage on July 1, the first day of the heat wave, followed by a second outage beginning on July 4 that still had not been resolved as of Friday.
Since 2014, the city has had an aspirational goal of reducing emissions by 80% of its 2005 levels by 2050. CHPE was a major part of that plan, which also included offshore wind and utility-scale solar. There has been progress: Of the 1,000 megawatts of solar the city aims to have installed by 2030, about two thirds have been built. Even so, about 90% of New York City’s electricity came from fossil fuels in 2025, according to the city’s comptroller.
Why the difficulty decarbonizing? Blame a mixture of policy and geography. New York City is dense and has a lot of old buildings with old heating systems. Reducing consumption of fossil fuels requires getting cars off the road (congestion pricing) and retrofitting buildings with electric appliances (Local Law 97).
But that’s the demand side — the supply side is far trickier. Utility-scale non-carbon-emitting power on the orders of hundreds of megawatts or a gigawatt will have to be built elsewhere and piped in via transmission lines. That means offshore wind, solar (ideally with battery storage), and maybe one day nuclear power.
To the extent New York City can build solar and storage locally, it means dealing with a thicket of building regulations and local opposition. Efforts to shut down or replace peaker plants in the city have run into a brick wall at the New York Independent System Operator, which has declared that at least some peakers will have to stay online through the end of the decade to maintain system-wide reliability.
The only other new source of carbon-free power currently under construction is the offshore wind project Empire Wind, due to come online in 2027. NYISO said last year that without CHPE, Empire, and two local transmission projects planned to enter service by 2030, New York City would be “deficient in the summer” through 2030.
Of course developers have scrapped several other offshore wind projects over the years, whether due to problems procuring the right size turbine or the Trump administration buying out their lease. And though New York Governor Kathy Hochul pledged last summer to develop at least a gigawatt of new nuclear capacity in the northern region of the state, that is probably a decade away from fruition.
Meanwhile the Clean Path transmission line, which was meant to connect New York City to several gigawatts of new wind, solar and hydropower, saw its contracts canceled in late 2024 as its projected costs continued to rise. Last year, utility regulators shut down an effort by the state-run New York Power Authority to take it over as a “priority transmission project,” questioning whether it was “needed expeditiously” to meet downstate reliability needs and arguing that the project “will not be needed to serve substantial amounts of generation until well after 2033, and possibly not until 2040.”
While the city has some utility-scale battery storage systems, would-be developers have faced intense local opposition. Fullmark Energy, for instance, scrapped a planned 650-megawatt storage project after protests from political figures, including frequent mayoral candidate Curtis Sliwa. A dispute over another battery storage project in Queens has escalated into accusations of assault leveled by Councilmember Phil Wong, who called for a criminal investigation into what he said was an assault by a contractor for a project against his staffer.
So what’s left for New York City to do?
Any near-term progress will likely come from increasing efficiency and adding marginal generation capacity, as opposed to large-scale new projects and decommissioning of power plants.
“We need to max out our energy efficiency gains from Local Law 97,” former New York City Chief Climate Policy Advisor Daniel Zarelli told me, referring to a 2019 law mandating steep reductions in emissions from large buildings in the city, which came into effect two years ago. He also called for a further“push on batteries and behind the meter solar, clean energy, and energy efficiency.”
Already across the state, behind-the-meter solar is shaving off peak power demand. On the afternoon of July 2, behind-the-meter solar accounted served about 4.5 gigawatts to users, according to NYISO and Grid Status data.
Going forward, Zarelli said, the city should use its purchasing and planning power — as it did with CHPE — for projects like resurrecting Clean Path. “We need to be starting now. Maybe it’s not by 2030, but soon after we could be getting the benefit of that.”
“Battery developers started to see interconnection costs that were around 30 or 40 times what is standard,” Patrick Robbins, director of the Utility Customers Association told me. “It just means that new battery projects completely don’t pencil out and so we have a de facto moratorium on new [battery] projects.”
Advocates for solar and storage have blamed Con Edison for the city’s slow progress there, claiming that changes in the interconnection process have made it essentially cost prohibitive for battery storage developers to move forward on new projects.
Some of these fights have landed in front of New York’s Public Service Commission. In a filing, the city cited data from Con Edison showing that “the interconnection costs for some projects … have increased by thousands of percent,” citing one project whose interconnection costs jumped from $640,000 to over $35 million due to changes in how Con Edison attributed grid costs from new projects.
"Battery storage is essential to New York's clean energy future, and Con Edison strongly supports the development of energy storage when projects are deployed at the right locations, at the appropriate scale, and with operating parameters that provide the greatest benefit to customers and the electric grid,” a Con Edison spokesperson told me. “Because grid constraints vary across our system — from neighborhood‑level distribution lines to major transmission corridors — the location of a battery ultimately determines how much benefit it can deliver to the grid and to customers.”
There were 115 megawatts of battery storage operational in New York City at the end of last year, according to Con Edison, and 865 megawatts of projects with interconnection agreements. Peak load in the region is about 10,000 megawatts, meaning that these new projects would meaningfully alter the way the utility serves its customers.
Con Edison has claimed in a regulatory filing that the concentration of projects could lead to “significant impacts from BESS charging on infrastructure upstream of primary feeders,” necessitating the changes to its interconnection process. The city claimed in its filing that the added cost has “understandably chilled ongoing development activity at a time when New York City needs more supply resources capable of serving peak demand.”
When I reached out to the Mayor’s Office of Climate & Environmental Justice about the dispute, I received a statement in return from New York City Chief Climate Officer Louise Yeung: “Expanding battery storage capacity will be critical to New York City’s clean energy future, as extreme climate events continue to strain our grid system,” she said. “The City is working across agencies and communities to ensure battery energy storage projects are deployed safely and can provide reliable power when New Yorkers need it most.”
As for residential solar and storage, it will likely take years for those distributed resources to become a regular part of New York City’s energy landscape. There’s only one fully permitted and approved residential storage system allowed in New York City, which was installed earlier this year by Brooklyn Solar Works. Negotiating approvals with city agencies including the Department of Buildings and the New York City Fire Department took around six years, the company’s vice president of sales, Steve Nelson, told me.
“It’s New York City. We’re expecting there to be some level of bureaucracy and some lift to get that stuff approved,” Nelson said. “But what we also lack is a ready, readily accessible residential battery that meets the criteria that these departments have set.”
All that adds up to both a practical and a political gap for decarbonization, Zarelli told me.
“Batteries are a great way to connect the climate agenda and the affordability agenda, and it’s in the mayor’s control — it’s the regulatory apparatus at FDNY,” he said. “That’s a big near-term play that I think would make a big difference.”
Earlier this year, New York City Councilmember James Gennaro introduced a bill to amend the fire code to relax some battery storage permitting and safety requirements. But that still leaves the city’s decarbonization advocates with many big fish to fry.
“It’s a challenging future that’s still out in front of us, and how to navigate that is really difficult. But it’d be good if we were actually aligned on what our goals were as a society,” Zarelli said.
Rates were up 17% year over year in June, according to the latest Electricity Price Hub update, with another increase on the way.
With higher temperatures come higher electricity bills. Whether through higher seasonal charges or greater usage, Americans across the country were paying more for electricity in June.
In Virginia, the epicenter of the data center boom, the typical household electricity bill was $192 in June, up from $172 in June of last year, according to the latest data from the Heatmap and MIT’s Electricity Price Hub. Rates, meanwhile, were about 18 cents per kilowatt-hour, compared to just over 15 cents in June of last year, a 12% hike. Rates were also up from the end of last year, when they were about 15.5 cents.
The rate increase is largely due to prices set by Virginia’s largest utility, Dominion. Its rates are up 8% so far this year, according to MIT researchers, and 17% over the past 12 months, the result of a base rate increase that took effect at the beginning of the year. The average base rate alone is up 7.5% year over year for the average Dominion customer.
But that’s not all: The fuel portion of the bill is rising $8 a month for the typical customer, Dominion said according to local media reports, as a result of rising costs. The fuel charge went into effect at the beginning of July. Already, Dominion customers are paying about $78 per month for the generation portion of their electricity bill, according to Heatmap-MIT data.
The price hike will likely increase pressure on Dominion as it seeks to sell itself to Florida utility and energy developer NextEra in a $67 billion deal announced in May.
Earlier this week, Virginia's lieutenant governor Ghazala Hashmi sent a detailed letter to the State Corporation Commission, Virginia’s utility regulator, with 64 questions about the proposed merger. She said the deal “carries unprecedented implications for Virginia’s consumers and regulatory landscape.”
Hashmi asked regulators to extend their review of the deal beyond the six-month period mandated by its utility regulations, writing that “forcing this process into the six-month timeline will render an already inadequate period completely unworkable.”
In May, when the deal was announced, NextEra said it would provide over $2 billion of bill credits over two years to Dominion customers in Virginia, North Carolina, and South Carolina, which Dominion executives estimated would add up to $10 per month over the two years.